Digital finance in Nepal and role of youth

The mobile penetration rate in Nepal is around 121%.The  internet penetration rate is around 63.81% and 95% of the population live within the coverage area of mobile tower. Although the rural area awaits high speed 3G,4G and other broadband internet. These data’s shows a huge possibility of digital financial service in Nepal.

Why Digital Financial Services in Nepal?

“The benefits of digital finance extend well beyond conventional financial services: This can also be a powerful tool and an engine for job creation in developing countries,”

-Jin-Yong Cai, International Finance Corporation executive vice president and CEO

As we all know Nepal is a geographically challenged country and the infrastructure here is a major barrier when it comes to banks and other micro-financial institutes in providing their services. Physical bank branches are expensive to construct as well as maintain in far-flung communities of Nepal. Since the existing networks are limited to urban and semi-urban areas of Nepal, beneficiaries have to travel a long distance to get financial services. In such scenarios, DFS can help us expand the basic financial services to remote areas. As DFS are both accessible and affordable, it could be the best option for country like ours.

DFS can also play an important role for small business and general public of Nepal. It would not only help to make their transactions fast, easy and  secure but also help them maintain their financial history. It increases transparency and further can help to improve their savings.

Digital Financial Literacy and the role of Youth

Digital Financial Literacy refers to having the knowledge to effectively use digital devices and technologies for financial transactions. Although we are focusing on the use digital financial services, peoples also need appropriate training to be acclimatized to these financial services.

Youths can play a crucial role in making their society and their communities aware about the existing digital financial options, help them to be acquainted with these platforms and teach them how to remain safe while using such platforms. Youths can organize programs in their communities and locales to encourage people to make use of the existing technology and also collaborate with private sectors working on the same field like  Unlimited Technology, which is on a mission to create a cashless society through their digital payment platform “e-dheba”.